Needham starts coverage on CleanSpark on growth potential

Investing.com -- Needham initiated coverage of bitcoin miner CleanSpark Inc (NASDAQ: CLSK) with a "Buy" rating and a $20 price target, citing the company’s strong operational efficiency, attractive valuation, and solid balance sheet.

CleanSpark, the second-largest bitcoin miner by hash rate, is expected to expand its capacity to 50 exahashes per second (EH/s) by the second quarter of 2025 and 63 EH/s by mid-2026, Needham noted. The firm highlighted CleanSpark's low general and administrative costs per EH and projected increasing operational leverage as capacity scales.

Needham also pointed to CleanSpark's valuation discount relative to peers, which it expects to narrow as the company reduces reliance on equity issuance. With approximately $660 million in net cash and bitcoin holdings, CleanSpark has financial flexibility to grow while potentially generating additional returns from its BTC stack.

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